Free tool
Annual vs monthly SaaS pricing calculator
See what annual billing really saves compared with paying month to month, per seat and for the whole team.
1–120
- Annual savings per seat
- 48
- Annual discount
- 20%
- Effective monthly price
- 16
- Yearly total, monthly billing
- 1,200
- Yearly total, annual billing
- 960
- Cost over 12 months (monthly / annual)
- 1,200 / 960
How it is calculated
Annual savings per seat = monthly price × 12 − annual price. Discount = savings ÷ (monthly price × 12) × 100. Effective monthly price = annual price ÷ 12. Over a custom horizon, annual billing is charged in whole years.
Example: $20/month vs $192/year saves $48 per seat (20%), an effective $16/month; for 5 seats that is $1,200 vs $960 a year.
Comparing competitors' plans? Normalise them like this first, as described in the competitor pricing analysis guide.
Frequently asked questions
- How is the annual discount calculated?
- It compares twelve monthly payments with the annual price to show the saving, the effective monthly price and the discount percentage.
- Can I calculate costs for a whole team?
- Yes. Enter a seat count to see multi-seat yearly totals.
- Does it include taxes?
- No. It uses the prices you enter; taxes and negotiated discounts are not included.